Bureau of Land Management Mineral Spacing Act

This bill would make it easier to get oil and gas wells approved when most of the land and minerals in a drilling area are not federal. In certain cases, the Interior Department would not require a separate federal drilling permit—such as when the federal government owns less than half the minerals in the unit and doesn’t own the nearby surface, or when a well on non-federal land crosses or produces from federal minerals. State or Tribal rules would still apply, and this change would not apply on Indian lands. It would not change how much royalty is owed to the federal government.

Companies would have to keep the federal government informed. They must notify the Interior Department when they file a state drilling application, send a copy within 5 days, report approvals within 45 days, and agree to let federal inspectors onto non-federal land to check federal lease terms. The bill also limits federal power on non-federal land in these mixed areas: the Interior Department could not require bonds to protect non-federal land, enter non-federal land without the owner’s consent, impose mitigation requirements, or require approval for surface cleanup.

Key points

• Who is affected: Oil and gas operators; non-federal landowners near drilling units; state regulators. Tribal lands are not included in these changes.
• What changes: No federal drilling permit in specific mixed-ownership cases; required notices to Interior; inspectors allowed by agreement; federal limits on bonds, access, mitigation, and surface reclamation on non-federal land .
• What stays the same: Federal royalty payments still apply.